Discounted Cash Flow Calculator
Enter every measurement Discounted Cash Flow Calculator asks for, then press Calculate. The result stays blank while you are still typing.
Press Calculate after the entries are in.
What Discounted Cash Flow is for
Discounted Cash Flow Calculator is the page to open when you need discounted cash flow from measurements you already have. It belongs with the other financial calculators because that is the work this arithmetic supports. The return on that outlay is the return on investment. Type the entries first. The result stays hidden until you press Calculate, so a half-finished form never flashes a number you might mistake for the answer.
How to fill in this calculator
- Cash Flow. Enter the value this part of the job needs.
- Discount Rate. Enter the value this part of the job needs.
- Growth Rate. Enter the value this part of the job needs.
- Growth Period. Enter the value this part of the job needs.
- Terminal Rate. Enter the value this part of the job needs.
- Terminal Period. Enter the value this part of the job needs.
The formula in plain language
Percent of a number is the percent divided by 100, then multiplied by the number. Percent change is the new value minus the old value, divided by the old value. Margin is profit divided by the selling price. Markup is profit divided by the cost. They are not the same percent. A tip is the bill times the tip percent. Split the bill plus the tip by the number of people.
A worked example
A $80 bill with an 18% tip adds $14.40. The table pays $94.40. A price of $50 with 20% off is $40. A product that costs $40 and sells for $50 has a $10 profit, a 25% markup, and a 20% margin.
Margin, return, and growth describe the same business decision. This discounted cash flow figure belongs with markup and IRR.
Mistakes that move the answer
- Change uses the first number as the base. Swapping the two numbers flips the sign.
- A 50% markup on cost is a 33% margin on price. Quoting the wrong one loses the sale or the profit.
How to check the result
After Calculate shows the discounted cash flow result, redo the last operation with a pencil using the rounded figures on the screen. Matching that check means the inputs were read correctly. If you edit a label or a sentence in this HTML file, reload the page. The form and this article both live in the file, so the edit is what visitors will read.